Talks between US President Donald Trump and Chinese President Xi Jinping at the recent G20 summit in Argentina led to a softening in the relationship and a standstill agreement in the trade war while negotiations continue.
Buying NXP, which specialises in computer chips for carmakers, would enable Qualcomm to diversify growth engines at a time of weak demand for smartphones and lacklustre results, said C.Y. Yao, a Taipei-based senior analyst with research agency TrendForce. "Restarting the acquisition of NXP will help Qualcomm effectively disperse future operational risks without betting fully on smartphones", said Yao, adding that he believes the restart of the NXP deal should still be under consideration at Qualcomm despite its assertion the deal had been terminated as the deadline had expired.
A spokesperson for the company said: "Qualcomm considers the matter closed".
Chinese officials made no mention of Qualcomm-NXP in their official press statement about the meeting.
China's foreign ministry declined to comment on Qualcomm during a regular media briefing on Monday. It has spent more than $20 billion (roughly Rs. 1.4 lakh crores) in share buybacks in the last 12 months. Qualcomm has a large presence in China so they were not left with any real options except to cancel the deal.
Qualcomm has already paid a $2 billion break-up fee to NXP.
One example could be Xilinx, a United States provider of chips used in communications network gear and consumer electronics that has a big presence in China.
A Qualcomm representative didn't immediately respond to a request for comment. The $3.4 billion (about Rs. 24,000 crores) deal, announced in March, is still awaiting Chinese regulatory approval.
Thus far, other high-profile mergers and acquisitions involving U.S. companies in other sectors have received Chinese approval.
"If that deal came back to him, he would most likely approve it quickly", Trump said.
In July, Qualcomm scrapped plans for a $44bn (£34bn) takeover of NXP after Chinese regulators signalled that they would block the takeover.
United States lawmakers also passed reforms earlier this year that increased CFIUS' scrutiny of deals.